Investor relations criteria welcomed by biotech PROs

Guidelines on communication between biotech companies and their investors, intended to prevent scandals such as the British Biotech affair last year, have been welcomed by PR specialists in the sector.

Guidelines on communication between biotech companies and their

investors, intended to prevent scandals such as the British Biotech

affair last year, have been welcomed by PR specialists in the

sector.



Share prices in the sector collapsed last year after several firms,

including British BioTech, were found to have made exaggerated claims

about new products which were subsequently not met.



Investors rely entirely on information about research and development in

biotech firms to guide their investments, because the firms have few

products on the market by which success can be judged.



Sue Charles, chief executive of biotech PR specialist HCC De Facto,

said: ’It’s a volatile industry to invest in. It is all about

communications and perception, so honesty and clarity is all

important.’



The BioIndustry Association guidelines state that companies must ensure

information is accurate and balanced; only put out information investors

need; ensure all releases are signed by senior personnel; and ensure no

price-sensitive information is published before being announced to the

stock exchange.



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